Academy Sports and Outdoors (ASO) is likely to report a good Q4, but its outlook for 2025 could be muted, Wedbush said in a Thursday note. The results are due March 20.

The company had a strong holiday season, thanks to good execution on variables that it could control such as merchandising and promotions, Wedbush analysts said.

However, the analysts expected only a "modest" earnings beat due to a promotional environment and continued investments in selling, general and administrative expenses.

They also expected conservative 2025 guidance due to the potential demand destruction in the mass market discretionary sporting goods category from tariffs and a softer economy.

In case the firm does not "directly quantify tariff exposure across its enterprise and include potential pressures in guidance," it could lead to an overhang on shares, the analysts said.

"We continue to recommend ASO shares but do not expect a strong positive catalyst from 4Q24 earnings," they said.

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